Whitbread, the parent company of Premier Inn, has revealed it will reduce its workforce by approximately 3,800 positions across the UK and Ireland as part of a fresh five-year strategic plan. The company aims to achieve £250 million in savings while transforming its dining operations.

The hospitality business cited mounting expenses from business rates and national insurance contributions as reasons for the cost-reduction drive.

The updated strategy encompasses an elevated savings target alongside reductions to capital expenditure exceeding £1 billion.

Additionally, the group intends to convert its 197 restaurant outlets into a combined food and beverage format, describing this approach as more streamlined and better suited to hotel visitors.

The proposed headcount reduction affects a workforce of around 30,000 people, with the company stating this remains contingent on staff discussions and that many of those impacted could remain with the business through reassignment to different roles.

Chief executive Dominic Paul explained that the organisation continually seeks improvements and, facing substantial cost rises from business rates and national insurance alongside what the market appears to discount regarding its underlying worth, had examined all available choices to optimise value creation across the medium and longer term.

He noted the process had been thorough and that every alternative had been considered objectively.

According to Paul, the new five-year plan leverages the company’s core strengths while accelerating its strategic direction significantly.